Enterprise Business Processes and Applications (IS 6006) Masters in Business Information Systems 3 rd Mar 2009 Fergal Carton Business Information Systems

Last week Apple Exercise –Customers / channels On-line / not on-line Registered / not registered –Products Hardware Software Service Talk from Miguel Lioittier, Institut Superieur de Commerce, Paris –The current financial crisis and its causes CRM implementations eCRM Questions on strategy proposal for 9 th March

This week Apple fulfilment process and ERP impact CRM implementations eCRM Questions on strategy proposal for 9 th March

Apple channels and products An increasing range of channels –Apple stores (eg. ATMac, Penrose Wharf) –Apple.com –Major accounts (Dixons, Curry’s, Fnac, HMV, Virgin, …) –Retailer (Tesco, O2 stores, Argos, …) –Indirect distributor (Russian market?) –… An increasing range of products –iTunes –iTunes gift cards –iPods –iPod accessories –Notebooks –Desktops –iPhones –Service –Software –…

Apple business framework Map out channels, products and customers –Group channels into those similar in terms of fulfilment process Think through the stages in the fulfilment process What is the impact of a single instance ERP system?

Apple business framework 1 Channels On-line Physical Products Hardware Software

Apple business framework 2 Customers Registered Not registered Products Hardware SoftwareService?

Apple fulfilment process stages A fulfilment process is defined by –A customer requirement (sales order, …) –A lead time or commit date Requires knowledge of inventory levels –A distribution organisation –An invoicing / cash collection process –A customer service commitment Map these information flows to framework

ERP impact for Apple All sales orders have to go through SAP Non SO-revenue must be interfaced –On-line sales –SAP interface for e-Commerce? Reporting of revenue ≠ collection of cash Universal Product coding, pricing Systems infrastructure requirements Support requirements

Integration is a trade-off Implementation of SAP in every sales outlet expensive? Control means knowing where inventory is Supply network is complex Visibility may be limited in certain regions Implementation and support resources

Why CRM Fails Why Does CRM Fail? –Disparate views of customers –Silo effect –Many types of CRM –Many types of CRM application

Critical Success Factors (Parr & Shanks, 2000) Top management Support Full-time release of business experts Empowered decision makers Realistic milestones and end date Steering Committee determines scope & goals Smaller scope Champion Vanilla ERP Balanced team Commitment to change Project Technology People

CRM is more than Technology Strategy important too Integrated business model needed Holistic view of customers needed Need to combine data from various sources Need to integrate value chain

Channel Disparity What sort of channels can a customer use to interact with a company? What sort of channel conflicts arise? Why do channel conflicts arise? What are the consequences for the customer? What are the consequences for the firm?

Operational and Analytical Disparity Data from Operations is not analysed – it gets buried in silos Business insights from Analytics are not applied to enhance operations Businesses tend to collect huge amounts of data –But little of use is done with these data

eCRM eCRM is an evolution of CRM using Internet technology A lot of eCRM is based around the customer portal A portal is a website that aggregates all of the customer’s shopping, research and service needs –E.g. amazon.com

eCRM and Portals Features –Online catalogues –Online order processing –Online order configurability –Lead capture and profiling –Online surveys –Literature fulfillment – (!) marketing

eCRM and Portals Advantages for customer –Customer is in control of purchasing process –Customer is not pressed for time –Site can be tailored to customer’s needs and interests –Customer can check out problems themselves

eCRM and Portals Advantages for company –Marketing information easy to gather –Profile of customer can be built –Cheaper than lots of call centre staff and physical retail locations

CRM strategy proposal Introduction (keep this short) –What is CRM? –Some issues concerning customer management arising from initial discussions –What this proposal will address Objectives of CRM Strategy project (main section, most effort should go in here) –How do PCB manage their customers –What is a typical (or your own) methodology for looking at CRM for clients –Applying this framework to PCB, what can you see as potential benefits of a CRM strategy Requirements Analysis (keep this short) –Outline of work that will be done to develop strategy (discovery procedure), requirements analysis etc. Budget Conclusion Appendices –References –Company Profile